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The EU General Court criticises lack of public access to purchase agreements for Covid-19 vaccines. Photo by TheDigitalArtist on Pixabay

Luxembourg, 17 July 2024

Judgments of the General Court in Cases T-689/21 | Auken and Others v Commission and T-761/21 | Courtois and Others v Commission

The EU Commission did not give the public sufficiently wide access to the purchase agreements for Covid-19 vaccines

That infringement concerns, inter alia, those agreements’ provisions on indemnification, and concerns the declarations that there was no conflict of interest on the part of the members of the team who negotiated the purchase of the vaccines

In 2020 and 2021, purchase agreements for Covid-19 vaccines were concluded between the Commission and some pharmaceutical undertakings: approximately €2.7 billion were quickly released so that a firm order could be made for more than 1 billion doses of vaccine.

In 2021, some Members of the European Parliament (MEPs) and private individuals requested, on the basis of the regulation on access to documents 1, access to those agreements and to certain related documents so that they could understand their terms and conditions and satisfy themselves that the public interest was protected.

As the Commission granted only partial access to those documents, which were put online in redacted versions, the MEPs concerned and private individuals brought actions for annulment before the General Court of the European Union.

In its judgments, the General Court upholds the two actions in part and annuls the Commission’s decisions in so far as they contain irregularities.

As regards the agreements’ provisions on the indemnification of the pharmaceutical undertakings by the Member States for any damages that those undertakings would have to pay in the event of their vaccines being defective, the General Court states that a producer is liable for the damage caused by a defect in its product and its liability cannot be limited or excluded vis-à-vis the victim by a clause limiting, or providing an exemption from, liability under Directive 85/374 2. The General Court notes, however, that there is no provision in Directive 85/374 that prohibits a third party from reimbursing the damages which a producer has paid as a result of its product being defective. It states that the reason why the provisions on indemnification were incorporated into the agreements 3, namely to compensate for the risks incurred by the pharmaceutical undertakings in connection with the shortening of the period for the development of the vaccines, had been endorsed by the Member States 4 and fell within the public domain. The General Court finds that the Commission did not demonstrate that wider access to those clauses would actually undermine the commercial interests of those undertakings. Similarly, the Commission did not provide sufficient explanations as to how access to the definitions of ‘wilful misconduct’ or ‘best reasonable efforts’, in some of the agreements, and as to how access to the agreements’ provisions on donations and resales of the vaccines, could actually and specifically undermine those commercial interests.

As regards the protection of the privacy of individuals, relied on by the Commission to refuse, in part, access to the declarations by the members of the team who negotiated the purchase of the vaccines that they had no conflict of interests, the General Court finds that the persons who brought the action had duly demonstrated the specific purpose of the public interest in the disclosure of the personal data of the members of that team. It was only by having the names, surnames and details of the professional or institutional role of the members of the team in question that they could have ascertained whether or not the members of that team had a conflict of interests. Furthermore, the Commission did not take sufficient account of all the relevant circumstances in order to weigh up correctly the interests at issue, related to the absence of a conflict of interests and a risk that the right of privacy of the persons concerned might be infringed.

NOTE: An action for annulment seeks the annulment of acts of the institutions of the European Union that are contrary to European Union law. The Member States, the European institutions and individuals may, under certain conditions, bring an action for annulment before the Court of Justice or the General Court. If the action is well founded, the act is annulled. The institution concerned must fill any legal vacuum created by the annulment of the act.

NOTE: An appeal, limited to points of law only, may be brought before the Court of Justice against the decision of the General Court within two months and ten days of notification of the decision.

1 Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission documents.

2 Council Directive 85/374/EEC of 25 July 1985 on the approximation of the laws, regulations and administrative provisions of the Member States concerning liability for defective products.

3 Commission Communication of 17 June 2020 entitled ‘EU Strategy for COVID-19 vaccines’ (COM(2020) 245 final).

4 Third paragraph of Article 6 of the agreement of 16 June 2020 on the procurement of COVID-19 vaccines concluded between the Commission and the Member States, published on the Commission’s website on 7 September 2020.

Unofficial document for media use, not binding on the General Court. The full text and, as the case may be, an abstract of the judgments (T-689/21 and T-761/21) are published on the CURIA website on the day of delivery.

 


Statement by the Commission on the General Court’s judgments on the access to documents cases concerning the purchase agreements for COVID-19 vaccines*

Brussels, 17 July 2024

The Commission takes note of the judgments of the General Court in the two cases concerning access to the COVID-19 vaccine contracts and related information.

The Commission will carefully study the Court’s judgments and their implications.

In its judgments,the General Court follows the Commission on most claims. In particular, it recognises that the protection of commercial interest covers the clauses of the contracts concerning:

  • The location of the production sites;
  • The provisions on intellectual property rights;
  • The provisions on down payments or advanced payments;
  • Access to delivery schedules.

The General Court has confirmed that the Commission was entitled to provide only partial access.

It has only partially upheld the legal action on two points.

It has ruled that the Commission should have provided more explanations to justify refusing access to certain provisions in the contracts.

It has also ruled that the Commission should have provided the personal data related to the members of the negotiation teams, composed of Member State representatives and Commission officials.

In general, the Commission grants the widest possible public access to documents, in line with the principles of openness and transparency.

In these cases, the Commission needed to strike a difficult balance between the right of the public, including MEPs, to information, and the legal requirements emanating from the COVID-19 contracts themselves, which could result in claims for damages at the cost of taxpayers’ money.

In fact, in many cases in the past, the Court of Justice has recognised the need to protect the business interests of a contractual partner.

In any event, the Commission had provided to the European Parliament (under the Framework Agreement on relations between the two institutions) full information on the COVID-19 vaccine contracts.

In accordance with its institutional role, the Commission is responsible to ensure the absence of any conflict of interest, and also has the duty to protect the privacy and personal data of the individuals concerned.

At this stage, the Commission reserves its legal options.

* Updated on 17 July 2024 at 11:07 CEST.

Source – EU Commission

 


Greens/EFA welcomes EU General Court ruling on access to COVID vaccine contracts

Today, the European Court of Justice (ECJ) issued its ruling on the lawsuit filed by five Greens/EFA MEPs requesting access to documents related to the joint purchases of Covid vaccines. The lawsuit was filed in 2021 following the Commission’s repeated refusal to provide the public with anything but heavily redacted versions of the Covid-19 vaccine purchase agreements arguing with commercial confidentiality. The Greens/EFA Group welcome that today’s ruling clarified that the Commission unduly refused access to certain elements in the contracts. The Court annulled the Commission’s decision and found that the Commission did not demonstrate sufficiently inter alia why access to key provisions such as on indemnification for any vaccine-related damages and on donations and resales of vaccines would undermine commercial interests.

Kim van Sparrentak, one of the Greens/EFA MEP who filed the lawsuit, comments:

“We are happy the court ruled the Commission did not give sufficiently wide access to the purchase agreements. In its ruling today, the ECJ acknowledged the importance of proper justifications with regard to any claims on undermining commercial confidence. The Commission’s automatism to claim confidentiality for just about everything relevant in the contracts was rejected. Any such claims can and should only be made where it can be demonstrated that public access could actually and specifically undermine those commercial interests.

“It is important that the court has confirmed the importance of transparency as it is fundamental in the fight against vaccine scepticism and citizens’ mistrust of public institutions. This ruling is significant for the future, as the Commission is expected to undertake more joint procurements in areas like health and defence. The new Commission must now adapt their handling of access to documents requests to be in line with today’s ruling.”

More:

The court case was initiated by Greens/EFA MEPs Kim van Sparrentak, Tilly Metz, Jutta Paulus, Margrete Auken and Michele Rivasi.

The core argument of the case centres on the Commission’s repeated refusal to provide Members of Parliament  with anything but heavily redacted and thus largely incomprehensible versions of the Covid-19 vaccine purchase agreements. Greens/EFA demanded information inter alia about the price of the vaccine’s unit, advance payments, liability for side effects and indemnification, resale and donations, challenging commercial confidentiality for those or arguing with overriding public interest. During the pandemic, transparency on contracts had been asked  by Parliament as a whole, but only the members of the Greens/EFA took the Commission to court over this.

Source – Greens/EFA

 

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